By ZHU Xiaoyu
Xiaomi's automotive division has been in talks with JAC Motors for months on contract manufacturing of EVs, but the two parties have not reached an agreement. Now, Xiaomi has began negotiations with BAIC and Brilliance.
A Xiaomi plant in Beijing has an annual production capacity of 150,000 vehicles and is in the trial production stage, so why does Xiaomi still want to collaborate with other automakers?
Xiaomi is already planning a second model, an SUV model, but is not considering building a new production line for it. While the first phase of the factory will make the first coupe, other car manufacturers will make the SUV. Collaboration is the easiest way for Xiaomi to ramp up quickly.
Xiaomi's CEO LEI Jun's goal for 2024 is to sell 100,000 Xiaomi cars, but the first-phase factory will not be ready, and construction of the second phase will take two years. Xiaomi still has concerns and is weighing up costs, technology, and marketing.
Delays in obtaining a production license for cars are leading Xiaomi to seek collaborations with other car manufacturers. But the qualification for car manufacturing is not the most pressing issue for Xiaomi.
EV makers need approvals from the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology, referred to in the industry as "double qualifications." At the end of August, Xiaomi received approval from the NDRC and expects to receive the second approval before the end of this year.
